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How to Launch a Business Without Spending a Dime

How to Launch a Business Without Spending a Dime
Money

The biggest mistake I see first time entrepreneurs make is that they spend too much money.

They rent an office or retail location, pay big incorporation fees, hire employees, and build an expensive website (just to name a few). And all before they’ve earned their first dollar!

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Each month their cash reserves get lower and lower while they struggle to make sales to cover their expenses. Eventually the fledgling business dies with no cash flow, leaving the owner hurt emotionally and financially.

Luckily, it is possible (and actually quite simple) to start up a business without spending a dime. The beauty of using this method is that you can test out a new business idea quickly and with zero risk. And instead of spending time negotiating leases or dealing with employees, you can spend 100% of your time on the most important thing: making that first sale!

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The first thing you’ve got to do is get past the idea of spending. Work out of your home or Starbucks on nights and weekends. Instead of hiring employees just get started with what you can do yourself, or ask friends for help. Don’t incorporate just yet, be a sole proprietorship. Don’t hire an expensive graphic artist to make your logo, stick with something simple…you get the idea.

You can spend money on all that stuff once you are bringing in revenue!

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Now to actually get started, here are 10 steps you can use to launch a new business, without spending a dime. The first five are logistical. The last five are all free ways to market your business (after all, the most important step is bringing in that first sale!)

  1. Get an EIN at the IRS website
    This one is specific to the USA, but all companies need an Employer Identification Number (EIN). You can apply for one online at the irs.gov in about 5 minutes by clicking here. List yourself as a sole proprietor for now.
  2. Setup Your Business Financials
    Get a free business checking account. This will allow you to keep your business’s money separate and track it (vitally important!). I like Washington Mutual’s free business checking. They will also give you a debit card to track your expenses (never use a credit card) which are currently zero! Then get a Paypal account and link it to your business account so you can accept payments.
  3. Choose a domain name
    The fastest ways to get eyeballs on your new business is the internet these days. Choose a domain name that is a keyword phrase your potential customers might type into a search engine. So if you are offering salsa lessons in Boston, you might choose “SalsaLessonsBoston.com”. The benefit of doing this is that you will most likely end up on the first page of Google results for that keyword phrase within a month or two. This will bring your customesr, and is much better than showing up on the first page for “John Smith’s Salsa Company” or something that no one ever searches for.
  4. Make a simple website
    The fastest way I know of to launch a website is using WordPress (wordpress.com or wordpress.org). If you don’t mind using a subdomain like “mydomain.wordpress.com” it’s free. But even if you want your own domain you can get one with WordPress pre-installed for about $70/year. WordPress comes with over 2500 “themes” to change the look and a great back end interface to edit the pages just like you’re in Microsoft word. LifeHack.org uses WordpPress as do many other popular sites.
  5. Set Your Prices
    Most first time entrepreneurs set their prices too low. People assume low prices mean low quality, and you are worth more. Give away your product or service to the first five customers free if you’d like (it will help built buzz and you can ask them for testimonials), but after that set your price in the top 1/3 of your industry. It’s always easier to lower them than to raise them.
  6. Start Marketing on CraigsList.com
    The next five steps are all free marketing. Start by making regular posts on Craigslist.com. This is a free classified website that attracts millions of viewers. You can get some traffic to your website instantly by making some posts here, and you should continue to repost them every few days.
  7. Start a Meetup.com Group
    Meetup.com helps people with similar interests get together. If a group exists in your area with potential customers, join it. Try to be invited as a guest speaker and offer value to members of the group (don’t pitch them). Just by making friends and helping out you will start to bring in business. If a MeetUp group for your topic doesn’t exist yet, that’s even better. Start one up! You’ll be viewed as the authority in the area.
  8. Post a Video to YouTube.com
    YouTube is a video sharing website, and it gets ridiculous amounts of traffic. It’s actually easier to make a video than you think, and it doesn’t have to be professional at all. You can record one with your digital camera, make a screen recording of your computer (even a powerpoint presentation) with software like Camtasia, or purchase a $20 webcam. Teach or show something useful, and include a link to your site at the end of the video. You will get traffic!
  9. Network
    Send an email to all your friends and family (and really everyone on your contact list) telling them about the business you just started. Put a note at the end asking them to forward the note to anyone they know who might be interested (and tell them about the free offer for the first five customers). You’ll not only reach your network, but you’ll reach your network’s network (an exponential difference). You should also get people’s business cards that you meet (far more effective than giving them since few people will write you back) and offer to help them.
  10. Write an Article and Give it Away!
    Even if you aren’t a writer, you can put together a great article. Think of something your potential customers might want to know. Then write a “top ten” list (e.g. the top ten beginner salsa moves) or a “ten step” format (e.g. the then steps to learning salsa basics). Contact the owners of a dozen different websites that your potential customers might visit, and see if they’d like to use your article for free. Include a link to your website at the bottom in the “About the Author” section.

Using this simple format you can launch a new business in about a month, and hopefully make your first sale. But the best part is, even if it doesn’t work, you’ve learned a priceless lesson and risked little or no money.

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Don’t spend a single red cent that isn’t absolutely required when launching a new business! See if your idea works first, and then spend AFTER you’ve made your first sale!

Brian Armstrong is the author of Breaking Free, which shows how to quit your job and start your first business! You can download three FREE chapters of the book and sign up for his FREE online course

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Last Updated on October 15, 2019

Is Procrastination Bad? The Truth About Procrastination Revealed

Is Procrastination Bad? The Truth About Procrastination Revealed

Procrastination is very literally the opposite of productivity. To produce something is to pull it forward, while to procrastinate is to push it forward — to tomorrow, to next week, or ultimately to never.

Procrastination fills us with shame — we curse ourselves for our laziness, our inability to focus on the task at hand, our tendency to be easily led into easier and more immediate gratifications. And with good reason: for the most part, time spent procrastinating is time spent not doing things that are, in some way or other, important to us.

There is a positive side to procrastination, but it’s important not to confuse procrastination at its best with everyday garden-variety procrastination.

Sometimes — sometimes! — procrastination gives us the time we need to sort through a thorny issue or to generate ideas. In those rare instances, we should embrace procrastination — even as we push it away the rest of the time.

Why we procrastinate after all

We procrastinate for a number of reasons, some better than others. One reason we procrastinate is that, while we know what we want to do, we need time to let the ideas “ferment” before we are ready to sit down and put them into action.

Some might call this “creative faffing”; I call it, following copywriter Ray Del Savio’s lead, “concepting”.[1]

Whatever you choose to call it, it’s the time spent dreaming up what you want to say or do, weighing ideas in your mind, following false leads and tearing off on mental wild goose chases, and generally thinking things through.

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To the outside observer, concepting looks like… well, like nothing much at all. Maybe you’re leaning back in your chair, feet up, staring at the wall or ceiling, or laying in bed apparently dozing, or looking out over the skyline or feeding pigeons in the park or fiddling with the Japanese vinyl toys that stand watch over your desk.

If ideas are the lifeblood of your work, you have to make time for concepting, and you have to overcome the sensation— often overpowering in our work-obsessed culture — that faffing, however creative, is not work.

So, is procrastination bad?

Yes it is.

Don’t fool yourself into thinking that you’re “concepting” when in fact you’re just not sure what you’re supposed to be doing.

Spending an hour staring at the wall while thinking up the perfect tagline for a marketing campaign is creative faffing; staring at the wall for an hour because you don’t know how to come up with a tagline, or don’t know the product you’re marketing well enough to come up with one, is just wasting time.

Lack of definition is perhaps the biggest friend of your procrastination demons. When we’re not sure what to do — whether because we haven’t planned thoroughly enough, we haven’t specified the scope of what we hope to accomplish in the immediate present, or we lack important information, skills, or resources to get the job done.

It’s easy to get distracted or to trick ourselves into spinning our wheels doing nothing. It takes our mind off the uncomfortable sensation of failing to make progress on something important.

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The answer to this is in planning and scheduling. Rather than giving yourself an unspecified length of time to perform an unspecified task (“Let’s see, I guess I’ll work on that spreadsheet for a while”) give yourself a limited amount of time to work on a clearly defined task (“Now I’ll enter the figures from last months sales report into the spreadsheet for an hour”).

Giving yourself a deadline, even an artificial one, helps build a sense of urgency and also offers the promise of time to “screw around” later, once more important things are done.

For larger projects, planning plays a huge role in whether or not you’ll spend too much time procrastinating to reach the end reasonably quickly.

A good plan not only lists the steps you have to take to reach the end, but takes into account the resources, knowledge and inputs from other people you’re going to need to perform those steps.

Instead of futzing around doing nothing because you don’t have last month’s sales report, getting the report should be a step in the project.

Otherwise, you’ll spend time cooling your heels, justifying your lack of action as necessary: you aren’t wasting time because you want to, but because you have to.

How bad procrastination can be

Our mind can often trick us into procrastinating, often to the point that we don’t realize we’re procrastinating at all.

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After all, we have lots and lots of things to do; if we’re working on something, aren’t we being productive – even if the one big thing we need to work on doesn’t get done?

One way this plays out is that we scan our to-do list, skipping over the big challenging projects in favor of the short, easy projects. At the end of the day, we feel very productive: we’ve crossed twelve things off our list!

That big project we didn’t work on gets put onto the next day’s list, and when the same thing happens, it gets moved forward again. And again.

Big tasks often present us with the problem above – we aren’t sure what to do exactly, so we look for other ways to occupy ourselves.

In many cases too, big tasks aren’t really tasks at all; they’re aggregates of many smaller tasks. If something’s sitting on your list for a long time, each day getting skipped over in favor of more immediately doable tasks, it’s probably not very well thought out.

You’re actively resisting it because you don’t really know what it is. Try to break it down into a set of small tasks, something more like the tasks you are doing in place of the one big task you aren’t doing.

More consequences of procrastination can be found in this article:

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8 Dreadful Effects of Procrastination That Can Destroy Your Life

Procrastination, a technical failure

Procrastination is, more often than not, a sign of a technical failure, not a moral failure.

It’s not because we’re bad people that we procrastinate. Most times, procrastination serves as a symptom of something more fundamentally wrong with the tasks we’ve set ourselves.

It’s important to keep an eye on our procrastinating tendencies, to ask ourselves whenever we notice ourselves pushing things forward what it is about the task we’ve set ourselves that simply isn’t working for us.

Featured photo credit: chuttersnap via unsplash.com

Reference

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